For Financial Professionals in the US

Opportunistic Alpha Managed Account

Invests with conviction where we believe the market misunderstands business models, assets or growth potential.

Overview

ABOUT THIS PORTFOLIO

A U.S.-centric equity portfolio, investing opportunistically in what we believe are mispriced business models, unconstrained by sector and with flexibility across market cap. Through deep fundamental analysis, we seek to identify misunderstood and underappreciated companies where we can invest with conviction to create long-term capital appreciation.

WHY INVEST IN THIS PORTFOLIO

Thinking Independently
Expressing differentiated views by applying autonomous thinking

Multiple Avenues for Capital Appreciation
Seeking to invest in companies where there is potential for both the free cash flow of the company and the stock multiple to grow over time

Actively Different
This concentrated portfolio seeks to outperform the benchmark over time by leveraging the best ideas of our global research team to identify stocks trading at a discount to their intrinsic value across style, sector and market cap

Various Approaches to Investing
Investing with conviction where we believe the market either misunderstands the business model, undervalues the company’s assets or underappreciates the company’s growth potential

PORTFOLIO MANAGEMENT

Nick Schommer, CFA

Nick Schommer, CFA

Portfolio Manager

Industry since 2007. Joined Firm in 2013.

Performance

RETURNS (%) (As of 03/31/2023)
Composite Pure Gross* Composite Net S&P 500® Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(04/01/2000)
Composite Pure Gross* 9.20 9.20 -11.71 21.51 13.03 11.45 8.71
Composite Net 8.42 8.42 -14.32 18.01 9.75 8.22 5.54
S&P 500® Index 7.50 7.50 -7.73 18.60 11.19 12.24 6.50

Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Returns greater than one year are annualized. Returns are expressed in U.S. dollars. All returns reflect the reinvestment of dividends and other earnings.

*Pure gross performance results do not reflect the deduction of any trading costs, fees or expenses and returns will be reduced by such advisory fee and other contractual expenses as described in the individual contract and Form ADV Part 2A. Pure gross returns are supplemental to net returns.

Net returns are calculated by subtracting the highest applicable Managed Account fee (3.00% annually, or 0.25% monthly) from the pure gross or gross composite return. The Managed Account fee includes all charges for trading costs, portfolio management, custody and other administrative fees. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. The fees are available on request and may be found in Form ADV Part 2A.

RETURNS (%) (As of 04/30/2023)
Composite Pure Gross* Composite Net S&P 500® Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(04/01/2000)
Composite Pure Gross* -0.99 8.82 -2.78 16.00 13.03 11.39 8.66
Composite Net -1.72 7.77 -5.63 12.65 9.76 8.16 5.50
S&P 500® Index 2.72 9.17 2.66 14.52 11.45 12.20 6.54

Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Returns greater than one year are annualized. Returns are expressed in U.S. dollars. All returns reflect the reinvestment of dividends and other earnings.

*Pure gross performance results do not reflect the deduction of any trading costs, fees or expenses and returns will be reduced by such advisory fee and other contractual expenses as described in the individual contract and Form ADV Part 2A. Pure gross returns are supplemental to net returns.

Net returns are calculated by subtracting the highest applicable Managed Account fee (3.00% annually, or 0.25% monthly) from the pure gross or gross composite return. The Managed Account fee includes all charges for trading costs, portfolio management, custody and other administrative fees. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. The fees are available on request and may be found in Form ADV Part 2A.

Calendar Year Returns (%)
Opportunistic Alpha Managed Account S&P 500® Index
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Opportunistic Alpha Managed Account -21.04 21.79 29.56 44.91 -3.49 8.23 8.38 -8.83 16.46 41.62
S&P 500® Index -18.11 28.71 18.40 31.49 -4.38 21.83 11.96 1.38 13.69 32.39

Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Returns greater than one year are annualized. Returns are expressed in U.S. dollars. All returns reflect the reinvestment of dividends and other earnings.

*Pure gross performance results do not reflect the deduction of any trading costs, fees or expenses and returns will be reduced by such advisory fee and other contractual expenses as described in the individual contract and Form ADV Part 2A. Pure gross returns are supplemental to net returns.

Net returns are calculated by subtracting the highest applicable Managed Account fee (3.00% annually, or 0.25% monthly) from the pure gross or gross composite return. The Managed Account fee includes all charges for trading costs, portfolio management, custody and other administrative fees. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. The fees are available on request and may be found in Form ADV Part 2A.

RETURNS-BASED STATISTICS (Composite As of 03/31/2023)

RISK / REWARD
VS. S&P 500® Index		 3YR 5YR
Information Ratio 0.30 0.20
Alpha 2.64 1.09
Tracking Error 9.62 9.02
Beta 1.02 1.11
R-squared (%) 80.62 84.75
UP/DOWN MARKET CAPTURE (%)
VS. S&P 500® Index		 3YR 5YR
Up Capture Ratio 102.78 110.94
Down Capture Ratio 93.10 105.46
STANDARD DEVIATION 3YR 5YR
Opportunistic Alpha Managed Account 21.83 22.49
S&P 500® Index 19.23 18.64
SHARPE RATIO 3YR 5YR
Opportunistic Alpha Managed Account 0.94 0.52
S&P 500® Index 0.92 0.53

Portfolio

Index represents the S&P 500® Index.

Top Holdings (As of 04/30/2023)
% of Rep Account
Howmet Aerospace Inc 5.70
Crown Holdings Inc 5.56
Caesars Entertainment Inc 5.46
Occidental Petroleum Corp 4.16
Advanced Micro Devices Inc 3.63
Horizon Therapeutics Plc 3.33
Catalent Inc 3.30
Amazon.com Inc 3.09
Sempra Energy 3.09
Freeport-McMoRan Inc 2.98
Total 40.30
View full holdings
Portfolio Characteristics (As of 04/30/2023)
  REP ACCOUNT INDEX
Number of Holdings
Equity Issues		 41 503
Market Capitalization
Weighted Average		 $65.22B $549.12B
Portfolio Turnover Rate
(1-year trailing)		 52.45% -
Price/Earnings Ratio
(1-year forward)		 16.96 18.32
Price/Book Ratio
 3.11 3.83
Earnings Growth Rate
(1-year forward)		 18.95% 13.00%
Sector Allocation % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 04/30/2023)
Regional Allocation % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 04/30/2023)
Market Capitalization Range of Equity Holdings % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 04/30/2023)
Developed vs Emerging Markets % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 04/30/2023)

Documents

Related Insights

Our intellectual capital is readily available and central to our Knowledge Shared approach"
Related Insights
A different stage for the next era of growth
May 2, 2023
Timely & Topical

A different stage for the next era of growth

Individual company growth prospects will be crucial amid long-term inflationary pressures.

4 min read

What is the market missing in growth equities?
Sep 23, 2022

What is the market missing in growth equities?

Growth investing in light of this year’s market volatility.

4 min read

An Altered Backdrop Forces Investors to Adjust
Jun 22, 2022
Analysis & Studies

An Altered Backdrop Forces Investors to Adjust

Investors must be willing to think differently in a changing market.

Read More